RIM 's growth slowed by legal worries

By
Peter Judge
| Mar 06, 2006

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Blackberry users may be breathing a sigh of relief now the long-running lawsuit with NTP is over, but Blackberry maker Research In Motion (RIM) will be counting the cost - in lost customers - for some time to come.

"While some uncertainty was anticipated in December, the overall impact was greater than previously anticipated," the company said in a statement. While all around mobile e-mail is booming, Blackberry's revenues were flat for the quarter, and about $50 million less than expected.

The company attracted 70,000 fewer new subscribers than expected during the quarter that ended on Saturday, and admitted the shortfall was due to "uncertainty surrounding the NTP litigation" which caused corporate customers to hold off on BlackBerrys, or buy other solutions.

The setback isn't enough to put the company in reverse, of course. The Blackberry is still by far the leading mobile e-mail device in market share, and at $550 million, tyhe company's new projection for the quarter's turnover, should still be a thumping 35 percent higher than turnover a year ago.

And despite gaining fewer subscribers, the 620,000 new users it put on in the quarter represent about ten percent of all the mobile email users in the world, according to most estimates of mobile email usage. "As we put this lengthy and complicated litigation behind us, we extend our sincere gratitude to all of our customers and supporters for their patience and loyalty," said Jim Balsillie, Co-CEO at RIM.